American Airlines Group (AAG) spokesperson along with Doug Parker says AAG is presently “not considering the sale of American Eagle Airlines.”

The spokesperson said change of heart was provoked by a change in the competition, razor thin margins, and the need to focus on completing the mainline merger.

However American Eagle future is far from clear as it struggles with issues over its operational and labor cost along with one of the worst ontime performance rates in the industry.
With the merger, not only does MQ face competition from external regional providers seeking AA business, but it must face two other inhouse regional operations which will give AAG enormous flexibility in awarding flying.

Besides the stated merger integration focus, I think one of the clear issues with MQ is, who would buy it with the existing cost structure? MQ with its reported higher cost is not going to be able to compete for fixed-fee flying very well and wont be an attractive asset for anyone to acquire as a result.

Tomorrow the pilots will receive a new proposal from the company regarding their contract in order to secure the new E75 order.

On another note, it is rumored on different sites and by different sources that American Eagle Airlines new name will be "Envoy Airlines". We will have to wait to the official decision and annoucement, though...

Quoting realsim (Reply 1):On another note, it is rumored on different sites and by different sources that American Eagle Airlines new name will be "Envoy Airlines". We will have to wait to the official decision and annoucement, though...

ok......... so........... they've already painted several American Eagle planes in the new livery..... so now they're going to have to re-paint them again with the name Envoy on the side?

Quoting realsim (Reply 1):On another note, it is rumored on different sites and by different sources that American Eagle Airlines new name will be "Envoy Airlines". We will have to wait to the official decision and annoucement, though...

Yesterday we received a formal proposal from Eagle Management regarding the placement of large RJs on our property in exchange for additional concessions to achieve the company’s structure objectives. The proposal is extensive and touches a number of sections in our collective bargaining agreement. We briefed the MEC immediately following the meeting and engaged in a very spirited debate on the merits of the proposed changes. The MEC debate on a response will continue up through our meeting on January 2nd when the MEC will determine how to respond to Eagle management. To allow you the opportunity to advise your LEC representatives, the following is a general summary of their offer:

Potential Upside

The company would agree to increase the "metering" commitment under the existing 824 agreement from 20 to 30 beginning in September 2014. They would still send 20 per month or 50% of the AA new hire classes until then (subject to metering and ALPA’s grievance)

They would increase the percentage of new hire obligations under the "protected pilot" agreement to 50% from the current 35% and send a minimum of 30 per month if AA hires 60 or more that month.

The amended terms of the protected pilot agreement would be extended to all pilots hired after October 11, 2011 and to any Eagle new hires.

Downside

The agreement would extend until 2024 with little opportunity to amend it.

We would have to transition to a compensation model that incorporates wage caps for Captains at 12 years and 4 years for First Officers very similar to what the pilots at PSA recently agreed to. The transition would occur over roughly a four-year period.

Per diem would be reduced by $.20 on the date of signing with some incremental increases.

The employee contribution for medical coverage would increase by 5% in about a year.

We would accrue vacation at a slightly different rate and would lose the fifth week altogether.

Allow the company to train crews on the EMB 175 months before we receive it and then return them to their previous equipment until the deliveries begin.

We would adopt a 401k plan and sick accrual system that mirrors the current PSA contract.

Our current profit sharing plan would be suspended.

The proposal only guarantees a fleet of 60 aircraft

We plan to post the details of PSA's provisions on the Eagle ALPA website as well as a contract comparison of other regional airlines that are more similar to our operation.

The company indicated to us that, without what they consider to be a cost competitive agreement, they will place the aircraft with a competing carrier and we would become "Comair II".

It's important to be patient while the MEC digests the offer and determines how best to respond to management. It is equally important that you engage your LEC representatives to provide the perspective they will need to make that determination. There are many moving pieces in a process like this, so the details are likely to change. While the MEC has committed to working in an expedient manner, if there is an agreement with the company, it will be subject to pilot ratification.

Though do not work for MQ, if I did, and after everything AA has put them through, I would say NO. From the little bit of info here, it looks like AA is just playing with them until they decide to shut them down or sell off after a few years.

The article is not even written right. It was PSA who got the 900's not Piedmont. If they can't even get that right how is anyone who reads this supposed to believe anything else is correct in this article. If it does not come from an inside source I wouldn't believe it.

Quoting LAXintl (Reply 7):AAG puts its cards on the table and now its up to MQ to decide its own future.

If the MQ pilots are smart, they'll walk away. Because ultimately they have no say in their future, whether they accept the deal or not. That's what not owning your own aircraft does to you.

Quoting LAXintl (Reply 7):AAG rightfully is also agnostic and knows it will get its deal at the end either way, whether inhouse with MQ or externally from the many players anxious to pick up the business.

They'll get the rates they want. They may not get the pilots. Regionals are having trouble filling their classes, and it seems only a matter of time before that starts showing up in the form of crew cancellations. AA should be careful what they wish for.

Quoting Mir (Reply 10):They'll get the rates they want. They may not get the pilots. Regionals are having trouble filling their classes, and it seems only a matter of time before that starts showing up in the form of crew cancellations. AA should be careful what they wish for.

I think we are still a few years, maybe 2 or 3 from seeing a large shortage. There are a lot of regional pilots out there that will fill the void for now. But in the future, as the Mainline carriers start to retire pilots, they will hire from the regionals. With the current wage situation in the regionals, not many people want the high cost of training to work in a very low wage industry. Yes, even though in the long run it isn't that bad, in the years after training it is basically welfare wages. (Think fast food)

As this gets worse, with concessionary contracts, and pay cuts, fewer people will be interested in the prospects of flying commercially.

After that happens, the regionals will be hurting for anyone to fly their planes, and will have to raise wages, or offer the training for next to nothing.

Great Lakes and Cape Air have less than 500 pilots between them. That won't solve the problem.

There are approximately 21,000 regional pilots now flying and 22,000 mainline retirements in the next 10 years. Regionals will not keep up with that level of attrition even as they shrink. They can't fill their classes now and mainline carriers haven't really started hiring in the numbers they need to. Part 117 rest rules will also be very difficult for regionals to comply with.

The wages have been driven so low for so long that people have stopped entering the profession. Driving wages lower will not help the situation. AAG might win the battle against Eagle, but they will lose the war unless they start compensating regional pilots enough to get people back into the industry.

The major airlines are really putting the squeeze on the regionals and the race to the bottom is intensifying for their employees. Dangling the "flow-through" lure as bait, pay and quality of life reductions are seen as temporary pains. But flow-through numbers have varied dramatically in the past. AE is a prime example. Cape Air has a type of flow through program with JetBlue, but the numbers are miniscule.

The University of North Dakota, one of the few college-level pilot training institutions left, is now offering a degree program in flying drones. Maybe that's the future.....

1) There's very few people left at Lakes. Why would they leave one sinking ship for another? 2) Cape Air pilots are compensated very well and have very good schedules. Many of them have no desire to jump to the 121 side of things.

Quoting BostonMike (Reply 16):The University of North Dakota, one of the few college-level pilot training institutions left, is now offering a degree program in flying drones. Maybe that's the future.....

In about fifty or sixty years, perhaps. The airlines will be needing lots of pilots in less than five years.

Quoting DiamondFlyer (Reply 17):2) Cape Air pilots are compensated very well and have very good schedules. Many of them have no desire to jump to the 121 side of things.

Or if they do, they're going to go right to the majors. A regional is probably a step backward for them.

Quoting norcal (Reply 15):There are approximately 21,000 regional pilots now flying and 22,000 mainline retirements in the next 10 years.

Is there a graph of this over the years? It sounds like a fun business problem to observe from the outside.

Quoting DiamondFlyer (Reply 17):1) There's very few people left at Lakes. Why would they leave one sinking ship for another? 2) Cape Air pilots are compensated very well and have very good schedules. Many of them have no desire to jump to the 121 side of things.

This goes to show how little I know about either airline. I just picked them as ones I knew operated small aircraft.

Same for Great Lakes pilots. Even though they aren't paid very well or fly bigger regional aircraft, most lakes pilots when they leave Great Lakes, they leave for a major carrier. Going to another regional for them is also a step backwards or a lateral move at best.

A lot of folks will lose their jobs when MQ gets shut down, it's just too bad. Anyone know how many employees work for them? This includes everybody - flight crew, ground support, office workers and managers. Just when the economy is beginning to recover.

It's too bad that the major airlines have commoditized the regional feed business to the point that unless a feed provider can guarantee the lowest cost contract relative to its peers, it will quickly recieve the ax from the mainline carrier. This scenario unfortunately ties the hands of the regional carriers' management teams - they must cut costs - and unfortunately they believe that the pilots' contracts are the only controllable, quantifiable area where cuts can be made.

This leaves regional airlines unable / unwilling to compensate pilots fairly and to retain experienced senior pilots, who really are the bottom line in the safe operation of the airline.

The major airlines are to blame. They are unwilling to accept even the smallest rise in the cost of regional feed as is necessary to maintain fair compensation of safe, competent pilots. This is absurd, considering how the majors have found a way to transform their business in order to compensate for the astronomical rise in fuel costs over the past decade, and even make record profits in spite of the high cost of fuel and weak economy. Clearly, the major airlines can afford a minor rise in the cost of regional feed, but their refusal to do so speaks volumes about how much they value having a safe, experienced, quality regional partner.

MQ will go the way of Comair, but it is only because of management's commoditization of the regional feed business. Obviously, they learned nothing from the Colgan accident. It is just a matter of time before it happens again.

Who is the consumer at the macro level in this situation? The major airlines. They refuse to pay $1 more for a service (regional airline feed) because of the commoditization they have created within the market.

The travelling public is keeping the pressure on AA to ensure its operates as lean as possible.

So the consumer keep the pressure on the airline, which creates the commoditization.

Its not AA's fault it must shop around for the best price. It does what consumers demand, which is lowest price wins.

Also this is not unique to airlines. Consumers drive commoditization in all types of industries. From grocery store to electronics to restaurants. Consumers demand best price value and either companies delivery or they die.

25 LAXintl
: So you blame AA because Airbus or Boeing trip over each other to supply planes to AA and were willing to offer large discounts, maybe even below cost

26 freakyrat
: I have several people working with me that are graduates of UND and Riddle that can't afford to go to work for a regional because they have enormous s

27 KD5MDK
: MQ shutting down as an airline would probably not affect their ground handling, which can be completely separate.